Cape Palliser Road funding

We're working alongside the Ngawi and coastal communities of South Wairarapa towards a funding solution with NZTA Waka Kotahi to preserve the fragile Cape Palliser Road into the future.

Cape Palliser Road is the only access route to several coastal communities and a key tourism link to the many attractions along the Cape Palliser coastline. The section of road from Lake Ferry Road to the Lighthouse carpark (approximately 36km) is currently classified as a Special Purpose Road (SPR) because of its:

• High tourism value
• High maintenance costs
• Minimal local ratepayer base

This classification means that New Zealand Transport Agency Waka Kotahi (NZTA) funds 100% of its maintenance and repairs. This is different from most local roads, where councils share costs under the Funding Assistance Rate (FAR) system. For us, this usually means NZTA pays about 51% and the council pays the remaining 49%.

The SPR classification will expire in June 2027, and NZTA has confirmed it will no longer fund Special Purpose Roads nationwide. This means that SWDC will need to cover an additional 49% of costs for the road, which is a major financial burden given:

• A small ratepayer base (about 12,000 residents, only a few hundred along the coast)

• High maintenance costs due to coastal erosion and ongoing storm damage

This isn't realistic for our small ratepayer base, so to ensure the road is maintained and accessible to both locals and visitors, we will continue to advocate for increased funding of the road from NZTA.

Visitor survey

To support future funding conversations, we're asking visitors to complete a quick survey to help us understand visitor numbers to demonstrate the wider economic and social value beyond local use.